Oakland County wants delayed bond sale finished this month

Oakland County wants to issue bonds this month after delaying a $350 million offer planned for Sept. 10, said Deputy Executive Robert Daddow.

The sale would be the biggest from the state since Detroit filed a record municipal bankruptcy on July 18, data compiled by Bloomberg show. The county on Sept. 9 will have a schedule of what needs to be done to complete the sale by its Sept. 30 fiscal year-end, Daddow said.

The postponement is a result of officials falling behind in assembling bond documents, Daddow said. Genesee County, Battle Creek and Saginaw County delayed deals after Detroit's filing because investors demanded interest rates that were higher than they were willing to pay. Oakland County, which borders Detroit to the north, is rated Aaa by Moody's Investors Service.

"We're still trying to get it in this fiscal year," Daddow said. That timing is feasible as long as people "don't start slipping on their assignments," he said.

Municipal-bond sales have withered in Michigan since Detroit's bankruptcy. Localities issued just $71.5 million of long-term debt last month, the slowest wave in at least 10 years, data compiled by Bloomberg show.

Oakland County has never postponed a deal before, said Daddow, who said he has been with the municipality for 20 years. He said it's the first negotiated issue in his tenure.

Proceeds will refinance debt issued in 2007 for retiree medical benefits. The deal is the largest since Michigan's State Building Authority issued $583 million during the last week of June, Bloomberg data show.

The county is allowed to issue debt to finance other post- employment benefits, known as OPEB, under Michigan law. The plan requires approval from state Treasurer Andy Dillon.

"We've never done anything as complex as this effort, pertaining to the call features and the fact that it's an OPEB bond and it's new legislation," Daddow said.